Barclays plans to cut 5,000 jobs in 2026, with artificial intelligence expected to replace part of the work currently carried out by support staff. The bank has already removed around 1,000 positions during the first half of the year and expects another 4,000 roles to go during the second half.
Barclays Has Already Cut 1,000 Roles
The first wave of job reductions affected around 1,000 support positions, including a number of developer roles. Barclays expects the total number of cuts to reach around 5,000 by the end of the year.
The reductions form part of a wider effort to change how the bank operates as it makes greater use of technology and artificial intelligence.
Restructuring Costs Could Reach £600 Million
The job cuts will push Barclays’ restructuring costs to around £600 million this year. That is roughly twice the amount the bank had originally planned to spend on its restructuring programme.
Barclays expects the changes to generate more than £1.1 billion in savings during 2027. The bank has therefore accepted substantial costs in the short term in pursuit of lower operating expenses in the following year.
UK Bank Has Seen The Largest Cost Savings
A significant share of the savings generated so far has come from Barclays’ UK banking operations. Annual cost savings in the UK bank increased from an average of around £76 million in 2024 and 2025 to £158 million this year.
The figures highlight the scale of the restructuring taking place across the bank.
Barclays Follows Other Banks Cutting Jobs Over AI
Barclays is not the only major lender reducing its workforce as artificial intelligence becomes more widely used. Standard Chartered has announced plans to cut around 8,000 jobs.
Its chief executive, Bill Winters, attracted criticism after describing some positions as “lower-value human capital” when discussing the impact of AI.
HSBC is also planning to use AI to reduce the number of UK financial advisers, with reports suggesting the workforce could fall by almost 70%. The moves underline the growing debate around how AI could reshape employment across the financial sector.
Bank Tax Debate Adds Pressure On The City
The Barclays announcement comes as the UK banking sector faces the possibility of higher taxes in the upcoming Budget. The government is considering reversing cuts to the bank surcharge introduced by former chancellor Jeremy Hunt.
Such a move could raise more than £2 billion a year for the Treasury. CS Venkatakrishnan, Barclays’ chief executive, said banks already contribute a substantial amount in tax.
He described taxation as a question of “proportion and of market signalling”, while acknowledging the difficult position facing the Chancellor.
Barclays Reports £2.3 Billion Quarterly Profit
The job reductions were announced alongside Barclays’ latest financial results. The bank reported £2.3 billion in pre-tax profit for the third quarter, representing a 12% increase compared with the same period last year.
Its fixed-income trading operation performed less strongly, with profits falling 19% year on year. Stock trading income moved in the opposite direction, rising 47% to £1.01 billion, helped by increased market volatility.
Bank Plans Changes To Employee Pay
Barclays is also changing how it rewards some employees. The bank plans to move towards higher bonuses and lower fixed salaries for its bankers, placing more emphasis on performance-based pay.
The change is expected to increase costs by around £130 million in 2027. This comes as Barclays simultaneously seeks large reductions in its overall operating costs through restructuring and greater use of technology.
AI Is Changing Employment Across Banking
The latest Barclays cuts highlight the growing influence of artificial intelligence on the UK’s financial sector. Banks are investing in technology while reducing some roles traditionally carried out by human employees.
For Barclays, the planned 5,000 job cuts are expected to bring substantial savings from 2027, despite the high restructuring costs being incurred this year. The changes also come at a time when banks are facing scrutiny over taxation, employee costs and the long-term economic effects of AI-driven automation.
